small suppliers toolkit

SMALL SUPPLIERS

TOOLKIT

Inspired to get you started

NEW Edition 2016

Disclaimer: Pick n Pay Retailers (Pty) Ltd

Pick n Pay has made every effort to maintain the accuracy of the information in this document. The information contained here-in is for general guidance only and is intended for the use of consumers and is not an exhaustive legal reference. Pick n Pay makes its documentation available without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use. Whist every effort has been made to offer the most current and correct and clearly expressed information possible, nonetheless, inadvertent errors can occur, and applicable laws and regulations may change.

Copyright Notice: © Copyright 2016 by Pick n Pay Retailers (Pty) Ltd

No part of this publication may be reproduced in any form or by any means without the express permission in writing.

Your Guide to Supplying Pick n Pay

2016

Pick n Pay Small Suppliers Toolkit | Enterprise and Supplier Development | Issue 2 2016Website: http://www.picknpay.co.za/boostyourbiz | [email protected] 2

Table of Contents

1. Introduction

Message from the Editor, Mishinga Seyuba Kombo ...................................... 4

Message from the CEO, Richard Brasher ..................................................... 5

Raymond Ackerman’s 7 Tried & True Test .................................................... 6

Editorial, Suzanne Ackerman-Berman ........................................................ 7

Foreword, Paulo Peereboom, Merchandise & Supply Chain Director ................ 8

2. Transformation at Pick n Pay

The Broad Black Based Economic Empowerment Act ................................... 9

Diversity at Pick n Pay ........................................................................... 10

Enterprise and Supplier Development Scheme .......................................... 11

3. Small Supplier Categories and Benefi ts

Preferential Trading Terms for Small Suppliers .......................................... 12

Small Supplier B-BBEE Criteria and Benefi ts ............................................. 13

4. Steps to Become Listed

Step 1: Have a Registered Business .........................................................15

Step 2: Developing your product .............................................................16

Step 3: Developing your service ..............................................................16

Step 4: Managing your Bookkeeping and Cash Flow ...................................17

Step 5: Packaging and Labelling Legislation ..............................................17

Step 6: Product Traceability ....................................................................18

Step 7: Food Safety and Audit Requirements .............................................19

Step 8: Registering on the PnP Portal .......................................................21

Step 9: Delivery Logistics and Distribution ................................................22

Step 10: Placing your products onto Pick n Pay shelves ..............................22

Pick n Pay Small Suppliers Toolkit | Enterprise and Supplier Development | Issue 2 2016Website: http://www.picknpay.co.za/boostyourbiz | [email protected]

Table of Contents

5. Checklist

Legal Checklist ............................................................................................ 25

B-BBEE Checklist ......................................................................................... 26

Electronic Checklist ...................................................................................... 27

Financial Checklist ....................................................................................... 28

6. Frequently Asked Questions

Glossary of Terms ........................................................................................ 29

7. Resource Directory

Government Funding ................................................................................... 36

Private Funding ........................................................................................... 37

The Banks .................................................................................................. 37

Training and Development Resources ............................................................. 37

Chambers of Commerce ............................................................................... 37

Industry Associations ................................................................................... 38

Government Departments ............................................................................ 39

8. End Notes

Application Procedure .................................................................................. 41

Contact Us ................................................................................................. 41

Our Suggested Reading ................................................................................ 42

Edited by | Mishinga Seyuba Kombo | Enterprise and Supplier Development ManagerPublished by | Pick n Pay Retailers (Pty) Ltd

Pictures | Karin Schermbrucker | Slingshot MediaCover Design | Miriam Haynes| Graphic Designer

Layout Design | PicEri Designs * [email protected]


“ This toolkit is the fi rst step for small suppliers to make contact with Pick n Pay. It shows you how to develop your product and go about becoming a

successful supplier to Pick n Pay. ”Mishinga Seyuba Kombo, Pick n Pay

Enterprise and Supplier Development Manager

This toolkit is the fi rst step for small suppliers to make contact with Pick n Pay. We want to ensure that small suppliers are empowered with information on the procedure and process of accessing the resources to do business with us. It shows you how to develop your product to become a successful and sustainable supplier to Pick n Pay. I hope you fi nd this toolkit gives you the confi dence to deal with Pick n Pay and in turn gives you the necessary support required to do business with us. I hope you enjoy reading it in as much as we have enjoyed putting it together.

I wish you every success.Mishinga

The Enterprise and Supplier Development Team

Suzanne Ackerman-Berman | Pick n Pay Transformation DirectorChairman of the Ackerman Pick n Pay FoundationPick n Pay Retailers (Pty) Ltd and Ackerman Pick n Pay Foundation

Vaughan Pierce | Legal AdvisorPick n Pay Retailers (Pty) Ltd and Ackerman Pick n Pay Foundation

Ndivhuwo Ramaliwa | Projects ManagerAckerman Pick n Pay Foundation

Message from the Editor

Mishinga Seyuba KomboEnterprise and Supplier Development Manager

“ It is always such a huge pleasure to see new start-

ups grow. At Pick n Pay we are uniquely placed to

provide an opportunity for entrepreneurs to put their

products in front of the consumer. We remain dedicated

to support, scale and sustain them.”Richard Brasher, Chief Executive Offi cer,

Pick n Pay Retailers (Pty) Ltd

Supporting small suppliers so that they are sustainable

We remain determined to play a strong and positive role in small businesses, the communities we serve and in the prosperity of South Africa as a whole. Pick n Pay has always supported small businesses and small suppliers by integrating them into our supply chain. Enterprise and supplier development involves a lot of teams across Pick n Pay. I cannot thank them enough for their invaluable contribution to making small businesses what they are. This toolkit reaffi rms our commitment to small businesses and to ensure that our customers ultimately benefi t from innovative local products on Pick n Pay shelves. It is always such a huge pleasure to see new and small businesses start up and grow. At Pick n Pay we are uniquely placed to provide an opportunity for entrepreneurs to put their products in front of the consumer through our stores. We take our responsibility in this process very seriously and will welcome approaches from suitable businesses through the Enterprise and Development scheme.

Richard Brasher Chief Executive Offi cer, Pick n Pay Retailers Ltd


Message from Richard Brasher Pick n Pay CEO


“ Starting your own business is not something you should rush into, or take lightly. Choosing a business is a little like choosing a life partner. It has to be more

than just vaguely suitable, or the fi rst thing that comes up. ”

Raymond AckermanFounder and Life President


Raymond Ackerman’s ‘7 Tried & True’ Test

The building blocks of every Business Plan

1. WHAT type of enterprise would you be good at? What would make you happy? What do you want to achieve in the short or long term period? What are the possible pitfalls, opportunities? What would make you happy if you lost your health, or if there was a disaster or a competitor that opened next door?

2. WHERE would you like to open your business? Is there a need for your service or product? Are you prepared to travel?

3. WHY should you be doing this? Is this a product or service that someone will be interested in purchasing or hiring? Is there a gap in the market?

4. WHEN should you start? Consider the time of year to enter the market? Look for trends or the relevant season.

5. WHICH format or kind of business model fi ts best with your long term plans? Should you buy an existing business or start from scratch? Should you form a partnership or fi nd shareholders?

6. HOW will you research existing services or products for purposes of comparison? How will your proposed enterprise operate logistically? How will you fi nance your plan? How will you promote your service or product?

7. WHO will be your customer, your employees, your accountant, your lawyer and your banker?

“ The Enterprise and Supplier Development Team helps small and emerging suppliers understand and manage retail industry demands

from food safety, to merchandise and accounting practices.”

Suzanne Ackerman-Berman, Pick n Pay, Transformation Director


Message from the Transformation Director

Suzanne Ackerman-BermanChairperson of the Ackerman Pick n Pay Foundation

We all know that building small and emerging businesses is key to our economic and social development, providing hope of employment and spreading opportunity and growth across all sectors. The Pick n Pay Enterprise and Supplier Development Scheme provides continuous mentorship and business development advice to entrepreneurs and small and medium businesses who are making a difference, be it with a fresh new product range or innovative business models. We aim to ensure that these small businesses remain long-term sustainable suppliers to Pick n Pay. We thank our Buyers and Store Managers for facilitating these exciting new start-ups onto our shelves and ask that they continue to support them in their fl edgling enterprises. By supporting these small businesses, Pick n Pay aims to make a real difference in the lives of many.

Suzanne


“ We have a dedicated team responsible for product development and together with the various divisions within Pick n Pay, we help you develop your product

or service and ensure that you become a successful and sustainable supplier to Pick n Pay.”

Paulo Peereboom, Pick n PayMerchandise and Supply Chain Director

would like to greet you as the Merchandise and Supply Chain Director. Small and Emerging Suppliers have always had the opportunity to play a part in our supply chain. Pick n Pay wants to ensure that we continue to support small suppliers, so that they can grow and in turn deliver more value and quality to our customers. We have a dedicated internal team who takes responsibility for developing and working with all our various divisions to ensure small and emerging suppliers are given the necessary assistance and support that they need. We help new suppliers understand and manage retail industry demands, from food safety to general merchandise and accounting practices. I hope you will fi nd this toolkit useful and that after reading it, you will know how to access the resources we have available to ensure your sustainable participation in the Pick n Pay supply chain.

Paulo

Message from Pick n Pay Supply Chain Director

Paulo PeereboomMerchandise and Supply Chain Director at Pick n Pay


Complying with the Revised B-BBEE Codes

The Revised Broad-Based Black Economic Empowerment Act (The B-BBEE Act) prescribes what constitutes a Small and Medium Enterprise. The qualifying thresholds for a Small and Medium Enterprise are defi ned as follows:-

n Exempt Micro Enterprises (EMEs) with a legally prescribed turnover of R0 – R10 million. EMEs may provide a B-BBEE Certifi cate but the Re-vised B-BBEE Codes allow them to produce a sworn affi davit confi rming the percentage of black ownership and that their annual return is R10 million or less. The affi davit is valid for 12 months from the date of issue.

n Qualifying Small Enterprise (QSE) have a legally prescribed turnover of between R10 million and R50 million. QSEs are required to obtain a B-BBEE certifi cate or alternatively a sworn affi davit on an annual basis con-fi rming the percentage of black ownership as well as confi rmation that their annual total is between R10 million and R 50 million.

Pick n Pay’s preferential

procurement policy gives

preference to businesses run

by women, youth and persons

with disabilities.

(If this applies to you and you meet our

qualifying criteria, we would like to hear

from you).

“ Pick n Pay remains committed to supporting entrepreneurs whose small and medium sized businesses create employment and help grow the South

African economy.”Andre Nel, Pick n Pay, Sustainability General Manager


“ Budding entrepreneurs and innovative small businesses are able to provide Pick n Pay with an opportunity to excite and delight its’ customers. If correctly resourced and mentored, these small enterprises can form a part of an exciting future for the diverse

regions and communities that make up South Africa.”Paul Smith, Manufacturing & Business Development Director,


Diversity at Pick n Pay

Our Diversity aims are to:-

§ Improve the competence and ability of Small Medium Enterprises (SME’s) to compete on an equal footing with established suppliers.

§ Empower and build entrepreneurs and SME’s by providing them with mentorship and business development support.

§ Promote and facilitate all aspects of small supplier development within Pick n Pay.

We take our responsibility to facilitate diversity within Pick n Pay very seriously. The Enterprise and Supplier Development Scheme is uniquely placed to provide an opportunity for entrepreneurs and small businesses to be excite and delight our customers.

We work in conjunction with all divisions within Pick n Pay and the Ackerman Pick n Pay Foundation to develop and grow small and medium enterprises into our supply chain. We ensure that small suppliers are given access to the tools, training and technical expertise.


Enterprise & Supplier Development Scheme

Pick n Pay’s Enterprise and Supplier Development Scheme (ESD) assists selected businesses enter the retail market by providing mentorship and guidance and business development support.

Small businesses have access to Pick n Pay’s internal corporate experts to assist with business management processes such as;

§ Marketing and advertising techniques

§ Buying and negotiating skills

§ Cash fl ow and basic business skills and principles

§ Subject to Pick n Pay’s preferential trading terms.

“We provide entrepreneurs

with the support they need

on how to supply Pick n Pay

with products or services.”

Ndivhuwo Ramaliwa

Enterprise Development

Projects Manager

“ A core function in our “Doing Good is Good Business” value is to support and build capacity for entrepreneurs and small business by providing guidance, mentorship and

business development support. We want to be the pond that they can fi sh in!”Gareth Ackerman, Chairman,Pick n Pay Retailers (Pty) Ltd


Subject to

Pick n Pay’s

Preferential

Trading Terms

Subject to

Pick n Pay’s

Preferential

Trading Terms

“Integrating small businesses into our supply chain has always been a part of how we do business.”Thembi Mazibuko, Pick n Pay, Head of Strategic Implementation

Preferential Trading Terms for Small Suppliers

CATEGORY 1: EARLY STAGE SUPPLIER

For a period of 12 months following successfully listing with Pick n Pay, an Enterprise with a Turnover less than R 3 million may qualify to have the following preferential trading terms:

CATEGORY 2: GROWING SUPPLIER

After passing the fi rst category threshold, an Enterprise with a Turnover between R 3 million and R 5 million may qualify to have the following preferential trading terms:

CATEGORY 3: SEASONED MATURE SUPPLIER

Once a supplier has reached a Turnover of R 8 million and above, their preferential trading terms will fall away and Pick n Pay’s standard suppliers trading terms will be apply.


Small Supplier B-BBEE Criteria and Benefi ts

To qualify for benefi ts, you will need

to provide us with the following

documents:

ü Company Registration Certifi cate

ü B-BBEE Certifi cate

ü Value Added Tax (if applicable);

ü South African Revenue Services Tax

Certifi cate (if applicable);

ü Comply with regulations in the

respective sector or industry.

Please see our suggested

checklist on page 25

Qualifying small suppliers who meet Pick n Pays small supplier criteria would qualify for:

n A favourable rebate.n Preferential trading terms.n Allocation of a one-on-one mentor based on a suppliers’ needs

assessment.n Facilitation and skills development in the areas of fi nance and

cash fl ow. n Access to our corporate experts.n Networking support through regional workshops.n Access to funding if needed for cash-fl ow purposes.n Facilitation of an off take agreement with Pick n Pay if needed.n Facilitation of access to the following:-

o Department of Trade and Industry (DTI);o Industrial Development Corporation (IDC); o Jobs fund loans; ando Other Government organisations for extra support.

“ We have seen good businesses thrive when we assist them with access to funding, fi nancial advice and administrative support.”

Bakar Jakoet, Pick n Pay, Chief Financial Offi cer (CFO)


Steps to become listed

STEP 1Have a

registered business

STEP 4Bookkeeping & Cash Flow

STEP 7Food Safety

Audit Requirements

STEP 10Placing

Products on PnP Shelf

STEP 2Develop your

product

STEP 5Packaging

and Labelling Legislati on

STEP 8Registering on the PnP Portal

STEP 3Develop your

service

STEP 6Product

Traceability

STEP 9Delivery,

Logisti cs & Distributi on

Steps explained in detail from page 15 to page 22.


STEP 1: Business Registration

The fi rst step to joining the Pick n Pay Enterprise and Supplier Development Scheme is to ensure that you have a registered business which is in operation. You will also need to comply with all the relevant legal and industry related regulations pertaining to the product or service. Consider all aspects of your operation and ensure you obtain all required licenses and permits as you develop your product, purchase equipment and operate on your premises.

1

Ensure that you comply with

the industry specifi c sector laws

& regulations such as annual

registration of CIPC Annual

returns, health and safety, food

safety, ethical employment, (skills

development levy) and labour

practices (UIF and PAYE).

returns, health and safety, food

safety, ethical employment, (skills

development levy) and labour

Tax ComplianceNote: If your turnover exceeds the legally prescribed threshold, currently R 1 million, you will be obligated to register for VAT and will have to register with the South African Revenue Services (SARS).

“ Every step in the growth and development of a small business is important to Pick n Pay. Successful and growing businesses mean better products and happy customers.”David North, Pick n Pay, Corporate Affairs and Group Strategy Director


STEP 2: Product Development | Products

The second step is to develop an understanding of the category that your product falls into as well as Pick n Pay’s merchandising strategy. Your product will usually fall into the following categories which are: Groceries and General Merchandise; Bakery; Butchery; Fresh Convenience (chilled or frozen ready to eat products); Clothing; Private Brands; Perishables and Fresh Produce.

STEP 3: Supplying | Services

If supplying services, then you would fall into the category Pick n Pay calls Corporate Procurement, comprising Fixtures and fi ttings for stores, distribution centres and offi ces such as shelving, refrigeration and furniture; Consumables: products such as packaging and stationery; and Service Contracts: such as security, cleaners and trolley porters.

2

3

and Fresh Produce.

If supplying food products:

You will need to comply with Pick

n Pay’s mandatory minimum

food safety requirements.

You will also need to understand

how your product fi ts into

Pick n Pay’s merchandising

strategy.

Corporate Procurement

If supplying services, you

will be considered as

a business-to-business

service provider and

would fall into a category

we call Corporate

Procurement (CP).


STEP 4: Bookkeeping and Cash Flow Management

In this step, you will need to determine how much capital, cash fl ow, time and resources you will need to successfully manage and operate your business. Create a solid business plan that includes cash fl ow projections and fi nancials. Ensure that your business plan details these requirements and if you are unsure, seek advice from a profes-sional such as an accountant or bookkeeper.

STEP 5: Products | Labelling

Before giving the green-light for a supplier’s product to be made available on Pick n Pay shelves, the supplier must adhere to very strict product, legal and labelling requirements, which differ from one product category to another.

4

5

sional such as an accountant or bookkeeper.

Note:

When necessary, seek the

professional guidance of a

registered accountant or

bookkeeper.

“Products will need to

comply with all specifi c

product related standards

and regulations in terms of

the South African Law.”

Reema Maharaj, Pick n Pay

Regulatory Affairs Manager


STEP 6: Product Traceability | From Source to Shelf

All ingredients and raw materials used in manufacturing your products will be required to have full traceability of the source, quantity, shelf life and full ingredients statement. Where necessary a Certifi cate of Authenticity will be required and any ingredients claiming to be organic or free range must have the appropriate Certifi cates of Declaration.

6

Note

All ingredients and

raw materials used in

manufacturing your

products will be required to

have full traceability of the

source, quality, shelf life and

full ingredients statement.

“ Small suppliers should familiarise themselves with the correct labelling requirements and take action to ensure labelling compliance.”

Natasha Mark, Pick n Pay, Food Technologist, National Technical Manager


STEP 7.1: Food Safety Audits | Requirements

If the relevant Pick n Pay category buyer is satisfi ed and indicates that they would like to list your food product, your facility will be required to meet the minimum food safety standards and undergo a Food Safety Audit. This audit includes the following key requirements; requirements for safe food production, quality management systems, factory capabilities and supply chain management.

7

Food Safety Audits:

Ensure that you comply

with the basic and

minimum food safety

standards so that you are

retail ready i.e. ready to

supply Pick n Pay

The Foodstuffs Cosmetics’

and Disinfectants Act

covers labelling, ingredient

declarations the use of

additives, preservatives and

colourants etc.

“ Sourcing food locally supports communities and local economies.”Thozama Vokwana, Pick n Pay, Fresh Produce Manager, Technical Division


STEP 7.2: Food Safety | International Standards Organisation

In South Africa, various laws govern the food safety aspects of a product. If you are producing a product with agricultural raw materials you need to be familiar with the various regulations of the Department of Agriculture. All Pick n Pay listed products must be produced in a facility that has been independently audited by an independent third party auditing company. The auditing process is managed and conducted in line with International Standards Organisation (ISO) ISO 17021 and ISO 19011 requirements, which ensures auditor competence and impartiality. The audit standards are based on the standards required by the Consumer Goods Forum and are available from the Global Food Safety Initiative Guidance Document. Note that the requirements vary if supplying own brand products or Pick n Pay Private label products.

7

“ Suppliers are required to undergo a food safety audit facilitated by accredited auditing bodies. We rely on independent third party certifi cation auditing bodies to conduct on-site

farm and premises audits.”Cindy Jenks, Pick n Pay, General Manager, Technical Division

Audit Standards are based

on the standards required

by the Consumer Goods

Forum and are available

from the Global Food

Safety Initiative Guidance

Document available at

http://www.mygfsi.com


STEP 8: Registering on the Pick n Pay Portal

Once you are listed as a small supplier, you would need to register your company on the Pick n Pay Portal. This is a necessary and important step towards establishing a business relationship with us. The Pick n Pay Portal is a free and effi cient service for all Pick n Pay suppliers. The portal manages suppliers trading documents, article information and cost prices. The Pick n Pay Portal is a web-based interface between Pick n Pay and small suppliers (which we call vendors) who supply us with products. The portal enables you to manage your business with Pick n Pay successfully and assists with the process of planning and tracking your business transactions. You will need to have your Value Added Tax (VAT) number, your Global Location Number (GLN) and product barcode ready.

8

“Your vendor account will

be activated for orders,

invoices, goods receipts,

goods returns, credit

advices, statements and

remittances.”

Mike Markotter, Business

Process Manager, Pick n Pay

Receiving orders and

creating invoices has now

become far easier. You can

access the Pick n Pay Portal

by registering at

https://www.pnpportal.co.za


STEP 9: Logistics, Warehousing, Distribution and Supply Chain

In this step, you will need to decide how you will manage your logistics, warehousing distribution and supply chain. The specifi c category buyer will be able to guide and advise you on delivery and logistics. If you meet our internal criteria, you will be required to deliver directly to our centralised distribution centers (DC’s) in Cape Town and Johannesburg. Deliveries will be direct to store in Kwa Zulu Natal and Eastern Cape until the DC’s have been built in these regions.

OR EITHER: Direct Store Delivery

Small suppliers who service our franchise stores can also opt to deliver directly to the Pick n Pay store in question.

9

Should you meet our internal

criteria, you will be required

to deliver your products to our

centralised distribution centre.

Preferential distribution fees are

applicable with an incremental

approach by phasing up distribution

fees once the milestone turnovers

are achieved.

Should you deliver directly

to any of our stores,

kindly ensure that you

comply with all safety and

quality food protection

measures.

Making a difference in the lives of all South Africans



Checklist

Do you have the following minimum requirements?

BUSINESS PLAN CHECKLIST

1. Copy of Company Registration Certifi cate

SOURCECompanies & Intellectual Property Commission (CIPC)Tel: 0861-002-472E-mail: [email protected]: http://www.cipc.co.za

2. Business Proposal

SOURCEFollow Raymond Ackerman’s ‘7 Tried & True’ TestRefer to Page 5 of the Small Suppliers Toolkit above

3. Copy of VAT/Tax Registration Certifi cate

VAT Registration Number

Copy of Valid Tax Clearance Certifi cate (Renewed annually)

Copy of SARS Import and Export License (if applicable)

SOURCESouth African Revenue Services (SARS) Tel: 080-000-7277 E-mail: [email protected]: http://www.sars.gov.za

“ The Government expects you to understand all the laws and regulations relating to the products you supply or the services you provide.”

Debra Muller, Pick n Pay, Company Secretary, Legal & Compliance


B-BBEE CHECKLISTThe B-BBEE Scorecard provides a basic framework against which to benchmark your current B-BBEE Score. B-BBEE certifi cates are used by a number of organisations for procurement purposes and to determine how far behind or ahead they are against the targets and the Revised codes of good practice that have been set for them. The certifi cate and Scorecard further facilitates the process of setting measurable targets for B-BBEE in your company.

Do you have the following minimum requirements?

1. Steps to obtain your B-BBEE Certifi cate

Select a verifi cation agency

You will be required to fi ll in an application form to confi rm annual turnover

Complete the application form and make the required payment

2. Documents required to prove Black Ownership

Copy of Identify Document of the applicant

Company Registration Certifi cate

Copy of the company share certifi cate

An Affi davit to prove black ownership

3. The benefi ts of a B-BBEE Certifi cate

Your organisation qualifi es as an Exempted Micro Enterprise (EME)

Large companies are encouraged to invest in a SME like yours

Your organisation assists in job creation and poverty alleviation

SOURCEEmpowerLogic (Pty) LtdTel: 080-111-4003E-mail: [email protected]: http://www.empowerlogic.co.za

“ Ensure that you start, manage and grow your business by complying with the industry specifi c sector regulations and laws required.”

Vaughan Pierce, Pick n Pay, Group Legal Advisor


ELECTRONIC CHECKLISTThe Pick n Portal enables businesses to plan and track orders and invoices. The portal is a web based user interface between Pick n Pay and suppliers who supply us with products.

Ensure you have the following requirements to sign on to the PnP Portal

1. Value Added Tax (VAT) Number

SOURCESouth African Revenue Services (SARS) Tel: 080-000-7277 E-mail: [email protected]: http://www.sars.gov.za

2. Global Location Number (GLN)

SOURCEGlobal Standards One (GS1)Tel: 0861-242-000 E-mail: [email protected]: https://www.gs1za.org

3. Global Trade Identifi cation Number (GTIN)

Bar Code

SOURCEGlobal Standards One (GS1)Tel: 0861-242-000 E-mail: [email protected]: https://www.gs1za.org

“ Receiving orders and creating invoices has now become far easier. The Pick n Pay Portal ensures 24 hour access to the tools and functionality to effi ciently do business with Pick n Pay.”Mike Markotter, Business Process Owner, Pick n Pay Electronic Data Interchange


“ Understand the difference between profi t and cash fl ow. Cash is king in managing your business.”

Diane Tate, General Manager, Pick n Pay, Information Services

Do you have the following minimum fi nancial requirements?

FINANCIAL CHECKLIST

Ensure you have the following:

1. Current Financial Statements

Income Statement

Balance Sheet

Cash Flow Statement

2. Business Plan

CIPC Registration Number

Turnover

Cash Flow Projections

Projected Income Statement & Balance Sheet

3. Statement of Financial Commitments

Statement of Financial Commitments

§ Lease Agreements

§ Rental Agreements

§ Hire Purchase Agreementso E.g. (Vehicles, Equipment or Machinery)

4. Statement of Personal income

Personal bank statements (of only the last three months)

Personal fi nancial statements for members/directors/trustees

Assets, Liabilities and Income


Frequently Asked Questions & Glossary of Terms

Terminology Defi nition

What is the Pick n Pay Enterprise & Supplier Development (ESD) responsible for?

The ESD Team provides mentorship, guidance and business development support to entrepreneurs, small and emerging businesses who would like to supply Pick n Pay with product or services. The application is aimed at small and medium businesses or enterprises that would like to supply Pick n Pay with product or services.

What does the Ack-erman Pick n Pay Foundation (APF) do?

The Ackerman Pick n Pay Foundation supports community based organisations that focus on sustainable job cre-ation or income generation projects. Assistance is given to community based organisations that focus on sustain-able job creation and income generation projects.

Broad-Based Black Economic Empowerment (B-BBEE)

The economic empowerment of all black people including women, workers, youth, people with disabilities and people living in rural areas through diverse but integrated socio-eco-nomic strategies that include, but are not limited to:

§ Increasing the number of black people that manage, own and control enterprises and productive assets

§ Facilitating ownership and management of enterprises and productive assets by communities, workers, coop-eratives and other collective enterprises

§ Human resource and skills development

§ Achieving equitable representation in all occupational categories and levels in the workforce

§ Preferential procurement

§ Investment in enterprises that are owned or managed by black people

What is an Exempt Micro Enterprise (EME)?

EMEs with an turnover of R10 million or less do not need a B-BBEE Certifi cate but are required to produce a sworn af-fi davit on an annual basis confi rming the percentage of black ownership. The affi davit is valid for 12 months from the date of issue.

What is a Qualify-ing Small Enterprise (QSE)?

A QSE has a legally prescribed turnover of between R10 and R50 million. They are required to obtain a B-BBEE certifi -cate or alternatively a sworn affi davit confi rming the percent-age of black ownership as well as confi rmation of their annual turnover. The affi davit is valid for 12 months from the date of issue.



Do you need a B-BBEE Certifi cate to run your organisa-tion successfully?

No, but making the decision to get your B-BBEE Certifi cate will benefi t your organisation and give you the competitive edge you need to move into the next level of your organisation’s strategy. The benefi ts in receiving a B-BBEE Certifi cate are that:-

§ It provides a competitive edge independent of your organisation’s size

§ Large companies are encouraged to invest in smaller companies, like yours, should you be compliant

§ Your organisation assists in unemployment and poverty in the long term

§ Your organisation will be able to apply for tenders

§ You will be able to showcase your B-BBEE level in your marketing material

What is a B-BBEE Score Card / Certifi cate?

It is advisable that all businesses obtain a B-BBEE certifi cate. The B-BBEE certifi cate measures empowerment according to the Department of Trade and Industry Codes of Good Practice. The B-BBEE status of an enterprise as measured under the applicable sector codes.

Registering for Value Added Tax (VAT) at the South African Reve-nue Services (SARS)

Compulsory registration: Any person who carries on an enterprise and whose total value of taxable supplies (taxable turnover) exceeds, or is likely to exceed, the compulsory VAT registration threshold, must register for VAT. The threshold is currently R1 million in any consecutive 12-month period.

Voluntary registration: A person can register as a vendor if that person carries on an enterprise where the total value of taxable supplies (taxable turnover) exceeds R50 000 (but does not exceed R1 million) in the preceding 12-month period.

Submission of VAT returns: VAT may be submitted man-ually or electronically and payment can be made manually, electronically or at any one of the four major banks.

What is the Consumer Goods Forum?

The Consumer Goods Forum aims to assist small businesses develop Food Safety Management Systems. It is important that small businesses develop a food safety management system to supply safe food and improve market access op-portunities where food safety hazards may occur in food pro-duction processes.



What is the Global Food Safety Initiative (GFSI)?

The GFSI is aimed at standardising food safety requirements for the retail sector. The GFSI Programme is a capacity-building programme for small businesses that aims to develop effective food safety management systems through a systematic continuous improvement process. The Global Food Safety Initiative has developed guidelines and tools to drive continuous improvement processes in food safety management systems. The programme considers primary production (plants, grains and pulses) and manufacturing (operation of primary products and manufacturing of processed foods). More information is available at http://www.ciesnet.com and https://www.mygfsi.com

What are Pick n Pay’s minimum food safety standards and where do I fi nd the relevant information?

To assess a supplier’s food safety status, we require a food safety audit. Undergoing a supplier food safety audit is one step in ensuring that Pick n Pay selects a capable supplier. This audit standard is determined by legislation and industry requirements. The audit is conducted by an independent auditing body. The audit is structured in three phases enabling a supplier to gradually meet the desired standards. Businesses start at either:-

§ Basic Level Assessment (only permitted by Pick n Pay for low risk food suppliers).

§ Intermediate Level Assessment (Pick n Pay’s entry level for high risk products).

§ Certifi cation against one of the GFSI recognised schemes.

Who will conduct the Food Safety Audit (FSA)?

If a supply audit is requested, suppliers are audited by an independent auditing body against the FSA assessment. The supplier needs to contact an independent body to conduct the audit. For more information contact Pick n Pay’s Technical Division Team Tel: + 27 21 856 7000

What is the Food Safety Network (FSN)?

The FSN employs food specialists and consultants who specialise in assisting small suppliers that require any information to enter the commercial market. For more information visit http://www.thefoodsafetynetwork.co.za

Where do I fi nd specifi c food safety requirements?

http://www.daff.gov.za

http://www.doh.gov.za

http://www.sabs.co.za



Where do I fi nd industry packaging and labeling requirements?

See Regulation 146 and Regulation 429Visit the Department of Health Website available at

http://www.doh.gov.za; http://www.daff.gov.za; and http://www.sabs.co.za

What industry Occupational Health and Safety (OHS) Requirements must a small supplier comply with?

Depending on the sector you are in, you may be required by legislation to register with an industry association. The Occupational Health and Safety Act requires the employer to provide a work environment that is safe and without risk to the health of employees. It is not compulsory for all organisations to have a health and safety policy, but as an employer, you are duty-bound to inform employees of work-related risks and dangers. The benefi ts of doing so are that you gain increased customer confi dence, you contribute to uplifting standards and you adhere to a specifi c set of standards set by the body in your own sector. More information is available at http://www.doh.gov.za and http://www.labour.gov.za

Does Pick n Pay support middle men or agents?

Yes. Although Pick n Pay gives preference to local manufacturing and production, we support import agents and distributors of imported products provided that the business is creating jobs and that you meet our stipulated criteria.

Does Pick n Pay expect its suppliers to supply Pick n Pay exclusively?

No. Each product is considered individually, but in cases where Pick n Pay has funded the business and we elect to apply our preferential procurement policy, we will apply the right of fi rst refusal. In all other instances, we are open to other retail listings, subject to the small supplier signing our small supplier declaration form.

Can I select the number of stores my product is listed in?

Yes. However the buyer and demand planners allocate products into clusters that give it the most chance of success.

What is waste allowance?

Waste allowance contributes towards the costs of products that do not sell at store level and takes the place of returns from stores. For more information on the measures Pick n Pay are undertaking to manage waste, contact your buyer who will assist you further.

What is a Global Location Number (GLN)?

A GLN is a 13 digit code required by all Pick n Pay Vendors. This number is a prerequisite for effi cient Electronic Commerce and Global Data Synchronisation. To fi nd out more or obtain a GLN, then visit http://www.gs1za.org. A GLN uniquely identifi es each business and physical location in the world. It is issued on registration with the industry controlling organisation, namely GS1.



What is the Global Trade Item Number Registry (GTINR)?

The GTINR identifi es items using a unique number in the sup-ply chain. You will need to register with GS1 to get your unique GLN. To do this, visit http://www.gs1za.org.

How do you apply for a Bar Code?

The organisation responsible for issuing bar code numbers is called GS1. GS1 bar codes are used in all industry sectors including retail and manufacturing. GS1 ensures that the bar code numbers that you receive are unique against all other numbers and will be registered in the GS1. For more information, visit http://www.gs1za/org. Click on “GEPIR Finding a company from a barcode” to fi nd your company’s GLN

What is the Electron-ic Data Interchange (EDI)?

EDI is the exchange of trade documents electronically between the computer systems of Pick n Pay and our vendor partners. EDI is used as the fundamental basis for exchanging trade documents in one form or another. Fax and Email are not considered as EDI transactions.

How do I register on the PnP Portal as an Edi partner?

To register as an EDI partner go to http://www.pnpportal.co.za download the guide and follow the process. Once EDI regis-tration is complete, your Vendor Account will be activated to receive orders on the PnP Portal Registration is free (up to 5 user accounts). Additional users can be registered. For more information contact PnP EDI Team: [email protected] or Tel: + 27 21 658 1600

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Empowering communities who in turn feed the nation


Inspired to support and sustain South African communities



Government FundingNational Empowerment Fund (NEF)

Tel: 011-305 8000Fax: 011-305 8001 * [email protected] http://www.nefcorp.co.za

Industrial Development Corporation (IDC)

Tel: 011-269 3000 Fax: 011-269 3116* [email protected] http://www.idc.co.za

The Business Place (TBP) Tel: 011-833 0340* [email protected] http://www.thebusinessplace.co.za

National Youth Development Agency (NYDA)

Tel: 0800-525 252 http://www.nyda.gov.za

National West Development Corporation (NWDC)

Tel: 018-381 3663 http://www.nwdc.co.za

Small Enterprise Development Agency (SEDA)

Tel: 0860-103 703* [email protected] http://www.seda.org.za

Small Enterprise Finance Agency (SEFA)

Tel: 0860-007 332* [email protected] http://www.sefa.org.za

Limpopo Economic Development Agency (LEDA)

Tel: 015-633 4700 http://www.leda.co.za

National Empowerment Fund (NEF)

Tel: 011-305 8000* [email protected] http://www.nefcorp.co.za

Mpumalanga Economic Growth Agency (MEGA)

Tel: 013-752 2440 http://www.mega.gov.za

Free State Development Corporation (FDC)

Tel: 051-400 0800 http://www.fdc.co.za

Resource Directory


Private FundingAngel Investment Network http://www.angelinvestmentnetwork.co.za

Business Partners Limited http://www.businesspartners.co.za

Old Mutual Fund http://www.oldmutual.co.za

WDB Investment Holdings http://www.wdbinvestments.co.za

The BanksABSA Enterprise Development

http://www.absa.co.za/Absacoza/Small-Business/Accessing/Enterprise-Development

First National Bank https://www.fnb.co.za/commercial-banking/fi nance/vumela-enterprise-development.html

Investec http://www.investec.co.za

Capitec Bank http://www.capitec.co.za

African Bank http://www.africanbank.co.za

Nedbank Small Business

http://www.simplybiz.co.za

Standard Bank http://sustainability.standardbank.com/socioeconomic/supporting-smes/enterprise-development-in-south-africa

Training and Development ResourcesShanduka Black Umbrellas http://www.blackumbrellas.org

South African Black Entrepre-neurs Forum (SABEF)

Tel: 011-053 7091* [email protected]

http://www.sabef.org.za

Chambers of Commerce South African Chamber of Commerce and Industry (SACCI)

Tel: 011-446-3800

http://www.sacci.org.za

The National Small Business Chamber (NSBC)

Tel: 0861-726 722

* [email protected]

http://www.nsbc.org.za/academy


Chambers of Commerce The Black Business Chamber * [email protected]

Business Unity South Africa (BUSA)

Tel: 011-7848000

* [email protected]

http://www.busa.org.za

Industry AssociationsThe South African Bureau of Standards (SABS)

http://www.sabs.co.za

The South African Poultry Association (SAPA)

Tel: 011-795-9920 http://www.sapoultry.co.za

The South African Savoury Snack Food Organization (SASSFO)

http://www.sassfo.org

Dairy Standard Agency http://www.dairystandard.co.za

Consumer Goods Council of South Africa (CGCSA)

Tel: 086-124-2000 Fax: 086-674-9929 * [email protected] https://www.cgcsa.co.za

The Consumer Goods Forum http://www.theconsumergoodsforum.com

African Farmers Association of South Africa (AFASA)

Tel: 012-3488566* [email protected] http://www.afasa.za.org

SA Feedlot Association Tel: 012-6671189Fax: 021-6671246Web: http://www.safeedlot.co.za

Red Meat Producers Association

* [email protected] http://www.redmeatsa.co.za

Institute of Packaging South Africa

Tel: 011-804 1614 http://www.ipsa.org.za

SA Pork Producers Association (SAPPO)

Tel: 012-361 3920Fax: 012-361 4069 * [email protected] http://www.sapork.biz


“We will facilitate any

funding applications on your

behalf with our approved

funding partners.”

Mishinga Seyuba Kombo

Enterprise and Supplier

Development Fund Manager

Government DepartmentsThe Department of Trade and Industry (DTI)


http://www.thedti.gov.za

The Department of Agriculture http://www.daff.gov.za

The Department of Health http://www.doh.gov.za

The Economic Development Department (EDD)

Tel: 012-394 1006 http://www.economic.gov.za

Western Cape Department of Economic Development and Tourism

Tel: 021-483 5065 http://www.westerncape.gov.za

The Department of Small Business and Cooperative Development


http://www.dsb.gov.za

The Department of Rural Development

http://www.ruraldevelopment.gov.za

Start by doing something you are passionate about



Application Procedure

The Pick n Pay Enterprise Development Fund is for small and medium businesses or enterprises that aim to supply Pick n Pay with products or services. We will require you to fi ll in our Enterprise and Supplier Development Application Form as well as send additional documentation such as your business plan as well as fi nancial information. Prospective applicants undergo an internal selection process and once we are satisfi ed, you will be notifi ed accordingly. For more information go to http://www.picknpay.co.za/boostyourbiz

If you have any further questions then contact us.Pick n Pay Offi ce Park101 Rosmead AvenueKenilworthCape TownTel: + 27 21 658 1000

Pick n Pay Offi ce Park2 Allum RoadKensingtonJohannesburg Tel: + 27 11 856 1000

[email protected]

Web: www.picknpay.co.zaPinterest: www.pinterest.com/picknpayTwitter: www.twitter.com/picknpayFacebook: www.facebook.com/picknayTwitter: www.twitter.com/picknpayYou Tube: www.youtube.com/user/picknpaytubeGoogle: www.plus.google.com/+picknpay


Useful Online Publications:

Financial Mail

http://www.fm.co.za

Business Day

http://www.bdlive.co.za

The Entrepreneur Magazine

http://www.entrepreneurmag.co.za

SME Toolkit

http://southafrica.smetoolkit.org

Food Safety Magazine

http://www.foodsafetymagazine.com

Business Partners

http://www.businesspartners.co.za

Our Suggested Reading

We see empowerment of individuals and communities as part and parcel of our commitment to our customers

Jonathan Ackerman, Pick n Pay Customers Director

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“ Doing good is good business”Mr Raymond Ackerman, Founder and Life President, Pick n Pay Retailers (Pty) Ltd

Promoting Economic and Social Transformation

HELPING SMALL SUPPLIERS GROWPick n Pay Retailers (Pty) Ltd

Pick n Pay Offi ce Park101 Rosmead Avenue

Cape Town, South Africa* [email protected]

Http://www.picknpay.co.za